Quarterly Report • Jul 26, 2012
Quarterly Report
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interim consolidated financial statements for the six months ended June 30, 2012
| H1/2012 | H1/2011 | +/- | Q2/2012 | Q2/2011 | +/- | |
|---|---|---|---|---|---|---|
| Revenues | 88.1 | 381.0 | –77% | 46.1 | 175.6 | –74% |
| Gross profit | 25.0 | 181.0 | –86% | 14.7 | 76.9 | –81% |
| Gross margin | 28% | 48% | –20 pp | 32% | 44% | –12 pp |
| Operating result (EBIT ) |
–34.7 | 129.2 | –127% | –16.5 | 54.3 | –130% |
| EBIT margin |
–39% | 34% | –73 pp | –36% | 31% | –67 pp |
| Net result | –23.9 | 90.4 | –126% | –11.6 | 38.2 | –130% |
| Net result margin | –27% | 24% | –51 pp | –25% | 22% | –47 pp |
| Net result per share – basic (EUR ) |
–0.24 | 0.90 | –127% | –0.12 | 0.38 | –132% |
| Net result per share – diluted (EUR ) |
–0.24 | 0.89 | –127% | –0.12 | 0.38 | –132% |
| Free Cash Flow* | –37.5 | 19.0 | –297% | –31.9 | 7.3 | 537% |
| Equipment order intake | 61.5 | 432.5 | –86% | 30.0 | 222.2 | –86% |
| Equipment order backlog (end of period) | 137.7 | 373.5 | –63% | 137.7 | 373.5 | –63% |
* Operating CF + Investing CF + Changes in Cash Deposits
USD order intake and backlog were recorded at the prevailing budget rate (2012: \$1.40/€; 2011: \$1.35/€; 2010: \$1.50/€)
USD revenues were converted at the actual period average FX rate (Q1/2012: \$1.31/€; 2011: \$1.40/€; 2010: \$1.33/€)
| key share data | ||||
|---|---|---|---|---|
| H1/2012 | H1/2011 | |||
| Germany in EUR, NASDAQ in USD | Shares | ADS | Shares | ADS |
| Closing Price (end of period) | 11.26 | 14.31 | 23.53 | 34.12 |
| Period High Price | 14.45 | 19.15 | 33.48 | 44.88 |
| Period Low Price | 10.26 | 13.24 | 22.70 | 32.65 |
| Number of shares issued (end of period) | 101,900,474 | 101,779,752 | ||
| Market capitalization (end of period), million EUR , million USD |
1,147.4 | 1,458.2 | 2,394.9 | 3,472.7 |
Business Activity p. 03 Important Factors of the ReportingPeriod p. 04 Results of Operations p. 08 Development of Revenues p. 08 Development of Results p. 09 Development of Orders p. 13 Financial Position and Net Assets p. 14 Opportunities and Risks p. 15 Outlook p. 16
Consolidated Income Statement p. 17 Consolidated Statement of Other Comprehensive Income p. 18 Consolidated Statement of Financial Position p. 19 Consolidated Statement of CashFlows p. 20 Consolidated Statement of Changes in Equity p. 21
AccountingPolicies p. 22 Segment Reporting p. 23 Stock Option Plans p. 24 Employees p. 25 Management p. 26 Related Party Transactions p. 26 Post-Balance Sheet Date Events p. 26
Responsibility Statement s. 27
This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "may", "will", "expect", "anticipate", "contemplate", "intend", "plan", "believe", "continue" and "estimate" and variations of such words or similar expressions. These forward-looking statements are based on our current views and assumptions and are subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Actual results and trends may differ materially from those reflected in our forward-looking statements. This could result from a variety of factors, such as actual customer orders received by AIXTRON, the level of demand for deposition technology in the market, the timing of final acceptance of products by customers, the condition of financial markets and access to financing for AIXTRON, general conditions in the market for deposition plants and macroeconomic conditions, cancellations, rescheduling or delays in product shipments, production capacity constraints, extended sales and qualification cycles, difficulties in the production process, the general development in the semi-conductor industry, increased competition, fluctuations in exchange rates, availability of public funding, fluctuations and/or changes in interest rates, delays in developing and marketing new products, a deterioration of the general economic situation and any other factors discussed in any reports or other announcements filed by AIXTRON with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this document are based on current expectations and projections of the Executive Board and on information currently available to it and are made as at the date hereof. AIXTRON undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, unless expressly required to do so by law.
This financial report should be read in conjunction with the interim financial statements and the additional disclosures included elsewhere in this report. Due to rounding, numbers presented throughout this report may not add up precisely to the totals indicated and percentages may not precisely reflect the absolute figures for the same reason.
AIXTRON ("the AIXTRON Group" or "the Company") is a leading provider of deposition equipment to the semiconductor industry. The Company's technology solutions are used by a diverse range of customers worldwide to build advanced components for electronic and optoelectronic applications based on compound, silicon, or organic semiconductor materials. Such components are used in displays, signaling, lighting, fiber optic communication systems, wireless and mobile telephony applications, optical and electronic storage devices, computing, as well as a range of other leading-edge technologies.
The Company markets and sells its products worldwide, principally through its own direct sales organization, but also through appointed dealers and sales representatives.
AIXTRON's business activities include developing, producing and installing equipment for the deposition of semiconductor materials, process engineering, consulting and training, including ongoing customer support.
AIXTRON supplies to customers both full production-scale complex material deposition systems and small scale systems for Research & Development ("R&D") and pre-production use.
AIXTRON's product range includes systems capable of depositing material films on a diverse range of different substrate sizes and materials. The deposition process technologies include Metal-Organic Chemical Vapor Deposition ("MOCVD"), Hydride Vapor Phase Epitaxy ("HVPE") for the deposition of compound materials as well as thin film deposition of organic materials on up to Gen. 3.5 substrates, including Polymer Vapor Phase Deposition ("PVPD™"), Organic Vapor Phase Deposition ("OVPD®") or large area deposition for Organic Light Emitting Diodes ("OLED") applications. Plasma Enhanced Chemical Vapor Phase Deposition ("PECVD") is being employed for the deposition of complex Carbon Nanostructures (Carbon Nanotubes, Nanowires or Graphene).
For silicon semiconductor applications, the AIXTRON systems are capable of depositing material films on wafers of up to 300mm diameter, employing technologies such as: Chemical Vapor Deposition ("CVD"), Atomic Vapor Deposition ("AVD®") and Atomic Layer Deposition ("ALD").
// Organic material deposition solutions for large area optoelectronic applications, including plastic electronics, OLEDs for lighting, display, solar cell devices and other applications // SiC for power electronics for smart grid, hybrid automotive and other applications
// III-V-materials (incl. GaN) on Silicon for next generation LEDs, power electronics or high speed processors for the smart grid, wireless communication, lighting and advanced IT applications
During the first six months of 2012, AIXTRON recorded total revenues of EUR 88.1m, a decrease of EUR 292.9m, or 77%, compared to EUR 381.0m over the same period last year. The most significant factor in this development was the year on year decrease in demand for MOCVD deposition equipment for LED applications.
Compared to the previous quarter, sequential revenues increased by 10% from EUR 42.0m in Q1/2012 to EUR 46.1m in Q2/2012.
Equipment revenues, excluding spares and service, were EUR 62.4m in H1/2012 (H1/2011: EUR 351.2m), which represents 71% of the total H1/2012 revenues (H1/2011: 92%). In Q2/2012, equipment revenues were EUR 33.1m compared to EUR 160.8m in the same period last year. Sequentially, equipment revenues increased by 13% from EUR 29.3m in Q1/2012.
The equipment purchased by AIXTRON's customers is predominantly used for the production of LEDs, which in turn are primarily employed as backlighting devices for LCD displays and emerging lighting applications.
The second largest end market for AIXTRON equipment in the second quarter revenues was for power electronics.
The remaining first half year revenues were generated by sales of spare parts and service, which, at 29%, represented a comparatively higher percentage of total revenues in H1/2012 (H1/2011: 8%).
In Q2/2012, spare parts & services represented 28% of total revenues and amounted to EUR 13.0m (Q1/2012: EUR 12.7m or 30%).
Reflecting increased capacity utilization, customers spent more on spare parts and service mainly due to the higher demand for consumables in production.
| H1/2012 | H1/2011 | +/- | ||||
|---|---|---|---|---|---|---|
| EUR million |
% | EUR million |
% | EUR million |
% | |
| Equipment revenues | 62.4 | 71 | 351.2 | 92 | –288.8 | –82 |
| Other revenues (service, spare parts, etc.) | 25.7 | 29 | 29.8 | 8 | –4.1 | –14 |
| Total | 88.1 | 100 | 381.0 | 100 | –292.9 | –77 |
77% of total revenues in the first six months of 2012 were generated by sales to customers in Asia. This is 13 percentage points lower than the 90% recorded in H1/2011. 7% of revenues in H1/2012 were generated in Europe (H1/2011: 4%) and the remaining 16% in the USA (H1/2011: 6%).
| H1/2012 | H1/2011 | +/- | ||||
|---|---|---|---|---|---|---|
| EUR million |
% | EUR million |
% | EUR million |
% | |
| Asia | 67.5 | 77 | 341.7 | 90 | –274.2 | –80 |
| Europe | 6.1 | 7 | 17.1 | 4 | –11.0 | –64 |
| USA | 14.6 | 16 | 22.2 | 6 | –7.6 | –34 |
| Total | 88.1 | 100 | 381.0 | 100 | –292.9 | –77 |
| H1/2012 | H1/2011 | +/- | ||||
|---|---|---|---|---|---|---|
| EUR million |
% Revenue |
EUR million |
% Revenue |
EUR million |
% | |
| Cost of sales | 63.1 | 72 | 200.0 | 52 | –136.9 | –68 |
| Gross profit | 25.0 | 28 | 181.0 | 48 | –156.0 | –86 |
| Operating costs | 59.7 | 68 | 51.9 | 14 | 7.8 | 15 |
| S elling expenses |
13.2 | 15 | 17.8 | 5 | –4.6 | –26 |
| General and administration expenses | 10.8 | 12 | 17.6 | 5 | –6.8 | –39 |
| R esearch and development costs |
34.0 | 39 | 24.0 | 6 | 10.0 | 42 |
| N et other operating (income) and expenses |
1.7 | 2 | (7.5) | –2 | 9.2 | –123 |
Cost of sales decreased year on year by 68% from EUR 200.0m in H1/2011 to EUR 63.1m in H1/2012 due to the reduced business volume. Cost of sales did not decrease proportionally by the same percentage as the decline in sales, principally due to the effect of fixed costs related to facilities and service activities. The year on year first half cost of sales relative to revenues ratio went up (H1/2012: 72%; H1/2011: 52%).
In Q2/2012 the absolute cost of sales remained close to the level recorded in the prior quarter (Q1/2012: EUR 31.7m) and amounted to EUR 31.4m. Cost of sales relative to revenues decreased sequentially, due to higher revenues from 75% in Q1/2012 to 68% in Q2/2012.
The Company's first half gross profit decreased by 86% year on year, in line with the negative revenue development and the disproportionately lower decrease in cost of sales, to EUR 25m in H1/2012 (H1/2011: 181.0m), resulting in a first six months gross margin of 28% (H1/2011: 48%). Sequentially, however, due to higher revenues at relatively stable cost of sales and product mix, the Q2/2012 gross profit increased by 43% from EUR 10.3m to EUR 14.7m, resulting in a gross margin of 32% (7 percentage points higher than the 25% in Q1/2012).
Despite significantly lower business volumes, operating costs increased year on year in absolute terms by 14% to EUR 59.7m in H1/2012 (H1/2011: EUR 51.9m) mainly due to a planned increase in R&D spending. Consequently, operating costs relative to revenues of 68% in H1/2012 were 54 percentage points higher than the 14% in H1/2011. In a sequential quarterly comparison however, the operating costs relative to revenues remained stable at 68%, while the absolute amount of operating costs increased by 9% from EUR 28.6m in Q1/2012 to EUR 31.2m in Q2/2012.
This operating cost development was influenced by the following factors:
Selling expenses decreased year on year by 26% to EUR 13.2m (H1/2011: EUR 17.8m), mainly against a backdrop of lower regional sales commissions and warranty expenses in line with lower sales volumes. Nevertheless, selling expenses relative to revenues, increased year on year by 10 percentage points to 15%, compared to 5% in H1/2011 due to the same lower sales volume factor.
In a quarterly sequential comparison, selling expenses remained stable at EUR 6.7m with a lower percentage relative to sales (Q2/2012: 15%; Q1/2012: EUR 6.6m; 16%).
The decrease in general and administration expenses by 39% year on year to EUR 10.8m in H1/2012 (H1/2011: EUR 17.6m) was principally due to lower profit related elements of the administration costs, a reduced number of temporary staff, lower consultancy fees and lower IT infrastructure costs. General and administration expenses relative to revenues increased from 5% of sales in H1/2011 to 12% in H1/2012.
In Q2/2012, general and administrative costs were down by 14% compared to the previous quarter and amounted to EUR 5.0m or 11% of revenues (Q1/2012: EUR 5.8m, 14%).
Research and development costs increased by 42% year on year from the EUR 24.0m recorded in H1/2011 to EUR 34.0m in H1/2012 reflecting AIXTRON's continuing high level of commitment to strategic investments in research and development. Due to the increase in R&D investments and the decline in revenues, R&D costs as a percentage of revenues increased from 6% in H1/2011 to 39% in H1/2012.
In a sequential quarterly comparison, R&D costs increased in absolute terms by 7% from EUR 16.4m in Q1/2012 to EUR 17.6m in Q2/2012, with a 1 percentage point lower cost per revenue percentage in Q2/2012 of 38% (Q1/2012: 39%).
The 30% higher average number of R&D employees year on year (H1/2011: 256; H1/2012: 332) reflects the Management's commitment to invest into focused R&D programs deemed necessary to support the Company's determination to retain AIXTRON's technical market leadership and is a key element in the Company's long-term strategy.
The successful execution of that strategy will ensure that AIXTRON is not just limited to the development of next generation LED manufacturing tools but also enables the development of new technologies for other substantial growth end markets being addressed by AIXTRON
| H1/2012 | H1/2011 | +/- | |
|---|---|---|---|
| R&D expenses (EUR million) |
34.0 | 24.0 | 42% |
| R&D expenses, % of sales | 39 | 6 | |
| R&D employees (period average) | 332 | 256 | 30% |
| R&D employees, % of total headcount (period average) | 34 | 31 |
Net other operating income and expenses in the first six months of 2012 resulted in an expense of EUR 1.7m, (H1/2012: income of EUR 7.5m) after recording an expense of EUR 1.9m in Q2/2012 (Q1/2012: EUR 0.2m of income).
In H1/2012, a net currency expense of EUR 3.0m (H1/2011: income of EUR 7.8m) arose principally from USD/EUR hedging contracts (H1/2012: expense of EUR 2.4m) as well as currency transaction and translation differences (H1/2012: expense of EUR 0.6m). In Q2/2012, the currency expense for USD/EUR hedging contracts amounted to EUR 1.1m and the expense for currency transaction and translation differences amounted to EUR 1.9m, mainly due to the weakening Euro within the quarter.
EUR 1.9m of R&D grants, received in H1/2012 (H1/2011: EUR 1.1m), were, as usual, recorded as 'other operating income'.
The absolute operating result decreased in a year on year comparison by 127% from EUR 129.2m in H1/2011 to EUR –34.7m in H1/2012 with a negative EBIT margin of –39% (H1/2011: 34%). This development was principally due to the significantly reduced gross profit, resulting from the lower sales volumes, coupled with an increasing absolute operating cost base, mainly driven by higher investments into R&D and currency effects as described above. In a quarterly sequential comparison, the EBIT slightly improved by 10% from EUR –18.3m (–44% margin) in Q1/2012 to EUR –16.5m in Q2/2012 (–36% margin).
Result before taxes decreased by 126% from EUR 129.5m in H1/2011 to EUR –33.1m in H1/2012, including a net finance income of EUR 1.7m in H1/2012 (H1/2011: EUR 0.3m). In Q2/2012, the result before taxes amounted to EUR –15.9m, representing a 7% sequential improvement in absolute terms against EUR –17.1m recorded in Q1/2012.
In H1/2012, AIXTRON recorded a tax credit from the capitalization of deferred tax assets of EUR 9.2m (H1/2011: EUR 39.1m at a tax rate of 30%), of which EUR 4.8m was recorded in Q1/2012 and EUR 4.4m in Q2/2012.
The net result in H1/2012 was 126% down year on year from EUR 90.4m (24% of revenues) in H1/2011 to EUR –23.9m.
The net result for Q2/2012 amounted to EUR –11.6m compared to EUR –12.3m in Q1/2012.
| H1/2012 | H1/2011 | +/- | ||
|---|---|---|---|---|
| EUR million |
EUR million |
EUR million |
% | |
| Equipment order intake | 61.5 | 432.5 | –371.0 | –86 |
| Equipment order backlog (end of period) | 137.7 | 373.5 | –235.8 | –63 |
The H1/2012 equipment order intake decreased year on year and at EUR 61.5m was 86% down from the EUR 432.5m recorded in H1/2011.
The sequential Equipment order intake in Q2 was relatively stable in comparison to Q1/2012 and was recorded at EUR 30.0m (Q2/2011: EUR 222.2m; Q1/2012: EUR 31.5m). As a matter of internal policy, the 2012 order intake in US Dollars is recorded at the current 2012 budget exchange rate of 1.40 USD/EUR (2011: 1.35 USD/EUR).
The total equipment order backlog of EUR 137.7m as at June 30, 2012 was 63% lower than the EUR 373.5m at the same point in time in 2011, and slightly higher than the 2012 opening backlog of EUR 136.8m as of January 1, 2012.
As a matter of strict internal policy, AIXTRON follows clear internal requirements before recording and reporting received equipment orders as order intake and order backlog. These requirements comprise of all of the following minimum criteria:
In addition and reflecting current market conditions, even if an order does fulfill all of the above criteria, the Company's Management reserves the right to assess whether the actual realization of each respective system order is sufficiently likely to occur in a timely manner according to Management's opinion. When Management concludes, that there is an unacceptable degree of risk of not realizing revenue on any specific system, Management will, until that risk is considered acceptable, exclude the order, or a portion of the order, from the recorded order intake and order backlog figures, regardless of compliance with requirements of the points 1–4 above.
The Company recorded no bank borrowings as of June 30, 2012 as was the case at December 31, 2011.
The equity ratio increased to 84% as of June 30, 2012, compared to 81% as of December 31, 2011, principally due to a 9% lower balance sheet total.
The AIXTRON Group's capital expenditures for the first half-year of 2012 amounted to EUR 9.9m (H1/2011: EUR 11.7m), of which EUR 9.3m (H1/2011: EUR 11.1m) were related to property, plant and equipment (including testing and laboratory equipment).
Cash and cash equivalents (including cash deposits with a maturity of more than three months) decreased to EUR 234.9m (EUR 129.1m + EUR 105.8m cash deposits) as of June 30, 2012 compared to EUR 295.2m (EUR 172.9m + EUR 122.3m cash deposits) as of December 31, 2011. The decrease was mainly driven by the incurred operating losses, the 25.4m EUR dividend payment made in Q2/2012 and the increase of work in progress within the first six months of 2012.
The value of property, plant and equipment increased to EUR 99.8m as of June 30, 2012 (EUR 96.2m as of December 31, 2011), principally due to R&D related additions.
The value of goodwill remained stable at EUR 64.4m as per June 30, 2012 with a minimal influence from currency translation adjustments compared to EUR 64.1m as per December 31, 2011. There were no additions or impairments in the first six months of 2012.
The value of other intangible assets decreased from EUR 6.2m as per December 31, 2011 to EUR 5.3m as per June 30, 2012. Differences arose mainly from amortization.
Inventories, including raw materials, work in progress and finished goods, increased from EUR 184.6m as of December 31, 2011 by 17% to EUR 215.8m as of June 30, 2012. This is principally explained by increased non-standard, prototype and laboratory tools work in progress not being offset by sales of systems out of inventory.
Advance payments from customers increased slightly by EUR 3.6m to EUR 68.5m as of June 30, 2012 (EUR 64.9m as of December 31, 2011).
Trade receivables decreased from EUR 78.6m as of December 31, 2011 to EUR 30.6m as of June 30, 2012, reflecting the reduced business volume in the first half-year 2012.
AIXTRON believes that the following market trends and opportunities in the relevant end user markets could have a positive effect on future business:
AIXTRON is exposed to a series of risks which are described in detail in the "Risk Report" of the Annual Report 2011 and in the section "Risk Factors" in AIXTRON's 2011 20-F Report, which has been filed with the U.S. Securities and Exchange Commission on March 1, 2012. Copies of the Company's most recent Annual Report and the 20-F Report are both available on the Company's website at www.aixtron.com (sections "Investors/Reports" and "Investors/ US-Listing"), the 20-F Report being additionally available on the SEC website at www.sec.gov.
During the first six months of 2012, AIXTRON Management was not aware of any significant additions or changes in the risks as described in the 2011 Annual Report/20-F Report referred to above.
A combination of end market price erosion, declining margins and the lack of a sustainable market outlook has created an extended period of uncertainty for AIXTRON's customers, who, as a consequence, have restrained their investments into new equipment during the first six months of 2012.
Whilst AIXTRON Management does not expect significant additional industry investments into LED backlighting capacity, recently reported increased capacity utilizations are contributing to a continuation of price declines for LED end devices and consequently reducing the price barrier for LED lighting applications.
There are some encouraging indications that Q2/2012 may indeed mark the bottom of the current order intake cycle. Management continues to believe that orders and revenues in the second half of 2012 will increase compared to the first six months of 2012.
However, the recent perceived increase in short-term macroeconomic risks in the end markets we address, has increased the timing risks on the predicted orders and shipments in the second half of the year and consequently the Company's ambition to be EBIT profitable in 2012. Order intake and shipment commitments in Q3 and early Q4 will determine the full extent of the year end performance. The Company expects nevertheless to return to profitability within the second half of this year.
That said, AIXTRON will continue to review and implement appropriate cost-saving measures to deliver the best possible year-end result.
AIXTRON Management continues to strongly believe that 2013 will be a key inflection point for the LED lighting market. The Company believes that the LED lighting market is set to develop positively and as a result, Management is of the opinion that 2013 will be a strong year for AIXTRON system demand, driven specifically by the potential growth in other non LED backlighting market applications, including LED lighting.
Beyond LED, AIXTRON is gaining traction in emerging MOCVD applications and other technology markets, including Organic and Silicon Semiconductor applications, building a foundation for the Company's long-term growth strategy and diversification ambitions.
The Company continues to be supported by a strong balance sheet with EUR 234.9m in cash at the end of H1/2012 and continues to carry no debt, providing AIXTRON with the necessary resilience in the current climate of subdued demand.
| in EUR thousands | H1/2012 | H1/2011 | +/– | Q2/2012 | Q2/2011 | +/– |
|---|---|---|---|---|---|---|
| R evenues |
88,134 | 381,032 –292,898 | 46,130 | 175,622 | –129,492 | |
| Cost of sales | 63,097 | 200,003 –136,906 | 31,392 | 98,769 | –67,377 | |
| Gross profit | 25,037 | 181,029 –155,992 | 14,738 | 76,853 | –62,115 | |
| Selling expenses | 13,297 | 17,829 | –4,532 | 6,735 | 7,204 | –469 |
| General administration expenses | 10,840 | 17,556 | –6,716 | 5,041 | 8,744 | –3,703 |
| Research and development costs | 33,957 | 23,954 | 10,003 | 17,559 | 11,541 | 6,018 |
| Other operating income | 2,080 | 9,094 | –7,014 | 1,083 | 5,029 | –3,946 |
| Other operating expenses | 3,758 | 1,633 | 2,125 | 2,946 | 134 | 2,812 |
| Operating result | –34,735 | 129,151 –163,886 | –16,460 | 54,259 | –70,719 | |
| Finance income | 1,656 | 1,729 | –73 | 526 | 912 | –386 |
| Finance expense | 1,382 | –1,382 | 13 | 895 | –882 | |
| Net finance income | 1,656 | 347 | 1,309 | 513 | 17 | 496 |
| Result before taxes | –33,079 | 129,498 –162,577 | –15,947 | 54,276 | –70,223 | |
| Taxes on income | –9,201 | 39,051 | –48,252 | –4,382 | 16,106 | –20,488 |
| Profit/loss attributable to the equity holders of AIXTRON SE (after taxes) |
–23,878 | 90,447 | –114,325 | –11,565 | 38,170 | –49,735 |
| Basic earnings per share (EUR ) |
–0.24 | 0.90 | –1.14 | –0.12 | 0.38 | –0.50 |
| Diluted earnings per share (EUR ) |
–0.24 | 0.89 | –1.13 | –0.12 | 0.38 | –0.50 |
| in EUR thousands | H1/2012 | H1/2011 | +/– | Q2/2012 | Q2/2011 | +/– |
|---|---|---|---|---|---|---|
| Profit or Loss | –23,878 | 90,447 | –114,325 | –11,565 | 38,170 | –49,735 |
| Losses/gains from derivative financial instruments before taxes |
3,102 | 4,919 | –1,817 | –4,473 | –1,182 | –3,291 |
| Deferred taxes | –937 | –690 | –247 | 1,351 | 948 | 403 |
| Currency translation adjustment | 4,167 | –13,079 | 17,246 | 5,826 | –3,806 | 9,632 |
| Other comprehensive income | 6,332 | –8,850 | 15,182 | 2,704 | –4,040 | 6,744 |
| Total comprehensive income attributable to equity holders of AIXTRON SE |
–17,546 | 81,597 | –99,143 | –8,861 | 34,130 | –42,991 |
| in EUR thousands | June 30, 2012 | Dec 31, 2011 | June 30, 2011 |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 99,759 | 96,176 | 83,863 |
| Goodwill | 64,437 | 64,078 | 57,540 |
| Other intangible assets | 5,347 | 6,205 | 5,683 |
| Other non-current assets | 725 | 720 | 722 |
| Deferred tax assets | 37,866 | 28,347 | 19,321 |
| Tax assets | 291 | 291 | 334 |
| Total non-current assets | 208,425 | 195,817 | 167,463 |
| Inventories | 215,831 | 184,553 | 186,348 |
| Trade receivables less allowance kEUR 880 (2011: kEUR 389; Q2 2011 kEUR 370) |
30,556 | 78,630 | 94,756 |
| Current tax assets | 1,076 | 8,150 | 8,147 |
| Other current assets | 12,971 | 14,894 | 26,904 |
| Other financial assets | 105,760 | 122,323 | 139,897 |
| Cash and cash equivalents | 129,135 | 172,892 | 202,335 |
| Total current assets | 495,329 | 581,442 | 658,387 |
| Total assets | 703,754 | 777,259 | 825,850 |
| Liabilities and shareholders' equity | |||
| Subscribed capital Number of shares: 100,821,549 (2011: 100,710,602; Q2 2011 100,700,827) |
100,822 | 100,711 | 100,701 |
| Additional paid-in capital | 277,347 | 274,816 | 272,232 |
| Retained earnings | 214,283 | 263,316 | 274,221 |
| Income and expenses recognized in equity | –4,172 | –10,503 | –20,185 |
| Total shareholders' equity | 588,280 | 628,340 | 626,969 |
| Other non-current liabilities | 216 | 217 | 196 |
| Other non-current accruals and provisions | 0 | 0 | 142 |
| Deferred tax liabilities | 10 | 140 | 0 |
| Total non-current liabilities | 226 | 357 | 338 |
| Trade payables | 16,510 | 20,527 | 40,265 |
| Advance payments from customers | 68,538 | 64,900 | 104,556 |
| Other current accruals and provisions | 18,129 | 36,558 | 36,300 |
| Other current liabilities | 11,182 | 20,076 | 5,355 |
| Current tax liabilities | 790 | 6,404 | 12,033 |
| Deferred revenues | 99 | 97 | 34 |
| Total current liabilities | 115,248 | 148,562 | 198,543 |
| Total liabilities | 115,474 | 148,919 | 198,881 |
| Total liabilities and shareholders' equity | 703,754 | 777,259 | 825,850 |
| in EUR thousands | H1/2012 | H1/2011 | +/– | Q2/2012 | Q2/2011 | +/– |
|---|---|---|---|---|---|---|
| Cash inflow from operating activities | ||||||
| Net income for the period (after taxes) | –23,878 | 90,447 | –114,325 | –11,565 | 38,170 | –49,735 |
| Reconciliation between profit and cash inflow/ outflow from operating activities |
||||||
| E xpense from share-based payments |
2,081 | 2,639 | –558 | 833 | 1,297 | –464 |
| D epreciation and amortization expense |
6,579 | 6,368 | 211 | 3,352 | 3,067 | 285 |
| N et result from disposal of property, plant and equipment |
–17 | 17 | 0 | –17 | 17 | |
| D eferred income taxes |
–9,620 | –1,752 | –7,868 | –6,648 | –4,693 | –1,955 |
| Change in | ||||||
| Inventories | –29,782 | –21,310 | –8,472 | –19,184 | –23,574 | 4,390 |
| Trade receivables | 48,775 | –8,745 | 57,520 | 8,695 | –25,386 | 34,081 |
| Other assets | 11,432 | –14,668 | 26,100 | 1,807 | –3,832 | 5,639 |
| Trade payables | –4,365 | 1,753 | –6,118 | 265 | –371 | 636 |
| Provisions and other liabilities | –33,048 | –10,104 | –22,944 | –9,403 | –5,929 | –3,474 |
| Non-current liabilities | –1 | –667 | 666 | –1 | –107 | 106 |
| Advance payments from customers | 3,405 | –11,821 | 15,226 | 3,573 | 34,850 | –31,277 |
| Cash inflow from operating activities | –28,422 | 32,123 | –60,545 | –28,276 | 13,475 | –41,751 |
| Cash inflow/outflow from investing activities | ||||||
| Capital expenditures in property, plant and equipment |
–9,338 | –11,107 | 1,769 | –3,382 | –4,478 | 1,096 |
| Capital expenditures in intangible assets | –532 | –569 | 37 | –239 | –256 | 17 |
| Proceeds from disposal of fixed assets | 825 | 42 | 783 | 5 | 42 | –37 |
| Bank deposits with a maturity of more than 90 days | 16,582 | 61,196 | –44,614 | –2,107 | 53,956 | –56,063 |
| Cash inflow/outflow from investing activities | 7,537 | 49,562 | –42,025 | –5,723 | 49,264 | –54,987 |
| Cash inflow/outflow from financing activities | ||||||
| Dividend paid to shareholders | –25,155 | –60,714 | 35,559 | –25,155 | –60,714 | 35,559 |
| Proceeds from issue of equity shares | 560 | 3,123 | –2,563 | 87 | 1,044 | –957 |
| Cash inflow/outflow from financing activities | –24,595 | –57,591 | 32,996 | –25,068 | –59,670 | 34,602 |
| Effect of changes in exchange rates on cash and cash equivalents |
1,723 | –3,877 | 5,600 | 2,338 | –1,446 | 3,784 |
| Net change in cash and cash equivalents | –43,757 | 20,217 | –63,974 | –56,729 | 1,623 | –58,352 |
| Cash and cash equivalents at the beginning of the period |
172,892 | 182,118 | –9,226 | 185,864 | 200,712 | –14,848 |
| Cash and cash equivalents at the end of the period | 129,135 | 202,335 | –73,200 | 129,135 | 202,335 | –73,200 |
| Interest paid | –8 | –140 | 132 | –1 | –56 | 55 |
| Interest received | 1,780 | 1,316 | 464 | 1,187 | 433 | 754 |
| Income taxes paid | –7,061 | –52,255 | 45,194 | –15,570 | –9,327 | –6,243 |
| Income taxes received | 7,197 | 1,075 | 6,122 | 13,672 | 428 | 13,244 |
| Income and expense recognized directly in equity |
||||||
|---|---|---|---|---|---|---|
| in EUR thousands | Subscribed capital under IFRS |
Additional paid-in capital |
Currency translation |
Derivative financial instruments |
Retained Earnings/ Accumulated deficit |
Total shareholders' equity attributable to the owners of AIXTRON SE |
| Balance at January 1, 2012 | 100,711 | 274,816 | –4,065 | –6,438 | 263,316 | 628,340 |
| Dividends to shareholders | –25,447 | –25,447 | ||||
| Dividend received on Treasury shares |
292 | 292 | ||||
| Share based payments | 2,081 | 2,081 | ||||
| Issue of shares for options | 111 | 449 | 560 | |||
| Net income for the period | –23,878 | –23,878 | ||||
| Other comprehensive income | 4,167 | 2,165 | 6,332 | |||
| Total comprehensive income | 4,167 | 2,165 | –23,878 | –17,546 | ||
| Balance at June 30, 2012 | 100,822 | 277,346 | 102 | –4,273 | 214,283 | 588,280 |
| Balance at January 1, 2011 | 100,101 | 267,070 | –10,995 | –340 | 244,488 | 600,324 |
| Dividends to shareholders | –60,714 | –60,714 | ||||
| Share based payments | 2,639 | 2,639 | ||||
| Issue of shares for options | 600 | 2,523 | 3,123 | |||
| Net income for the period | 90,447 | 90,447 | ||||
| Other comprehensive income | –13,079 | 4,229 | –8,850 | |||
| Total comprehensive income | –13,079 | 4,229 | 90,447 | 81,597 | ||
| Balance at June 30, 2011 | 100,701 | 272,232 | –24,074 | 3,889 | 274,221 | 626,969 |
This consolidated interim financial report of AIXTRON SE has been prepared in accordance with International Financial Reporting Standards (IFRS) applicable for Interim Financial Reporting, IAS 34.
It was not audited according to §317 HGB or reviewed by a certified auditor.
The accounting policies adopted in this interim financial report are consistent with those followed in the preparation of the Group's annual financial statements for the year ended December 31, 2011.
The consolidated interim financial statements of AIXTRON SE include the following operating subsidiaries (collectively referred to as "AIXTRON", "the AIXTRON Group", or "the Company"): AIXTRON, Inc., Sunnyvale, California (USA); AIXTRON Ltd., Cambridge (United Kingdom); Nanoinstruments Ltd., Cambridge (United Kingdom); AIXTRON AB, Lund (Sweden); AIXTRON Korea Co. Ltd., Seoul (South Korea); AIXTRON China Ltd., Shanghai (China); AIXTRON KK, Tokyo (Japan); and AIXTRON Taiwan Co. Ltd., Hsinchu (Taiwan) and Genus Trust, Sunnyvale (USA). In comparison with December 31, 2011, there have been no changes to the consolidated group of companies.
The following segment information has been prepared in accordance with IFRS 8 "Operating Segments". As AIXTRON has only one operating segment, the information provided relates only to geographical data.
The Company markets and sells its products in Asia, Europe, and the United States, mainly through its direct sales organization and cooperation partners.
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets are based on the geographical location of the assets.
| in EUR thousands | Asia | Europe | USA | Group | |
|---|---|---|---|---|---|
| Revenues realized with third parties | H1/2012 | 67,455 | 6,113 | 14,566 | 88,134 |
| H1/2011 | 341,688 | 17,130 | 22,215 | 381,033 | |
| Segment assets (property, plant and equipment) |
Jun 30, 2012 | 3,646 | 93,463 | 2,650 | 99,759 |
| Jun 30, 2011 | 631 | 80,546 | 2,686 | 83,863 |
In the first six months of 2012, AIXTRON's employees and Executive Board members held stock options, representing the right to receive AIXTRON common shares or AIXTRON American Depositary Shares (ADS). The status of these options developed as follows:
| AIXTRON ordinary shares | Jun 30, 2012 | Exercised | Expired/ Forfeited |
Allocation | Dec 31, 2011 |
|---|---|---|---|---|---|
| Stock options | 3,720,326 | 109,834 | 53,004 | 31,000 | 3,852,164 |
| Underlying shares | 4,385,577 | 109,834 | 55,230 | 31,000 | 4,519,641 |
| AIXTRON ADS | Jun 30, 2012 | Exercised | Expired/ Forfeited |
Allocation | Dec 31, 2011 |
|---|---|---|---|---|---|
| Stock options | 6,610 | 0 | 0 | 0 | 6,610 |
| Underlying shares | 6,610 | 0 | 0 | 0 | 6,610 |
The total number of employees rose from 832 on June 30, 2011 to 990 persons on June 30, 2012.
| 2012 | 2011 | +/- | ||||
|---|---|---|---|---|---|---|
| Jun 30 | % | Jun 30 | % | abs. | % | |
| Asia | 184 | 19 | 170 | 20 | 14 | 8 |
| Europe | 673 | 68 | 547 | 66 | 126 | 23 |
| USA | 133 | 13 | 115 | 14 | 18 | 16 |
| Total | 990 | 100 | 832 | 100 | 158 | 19 |
| 2012 | 2011 | +/- | ||||
|---|---|---|---|---|---|---|
| Jun 30 | % | Jun 30 | % | abs. | % | |
| Sales | 93 | 9 | 69 | 8 | 24 | 34 |
| Research and Development | 343 | 35 | 267 | 32 | 76 | 28 |
| Manufacturing and Service | 440 | 44 | 390 | 47 | 50 | 13 |
| Administration | 114 | 12 | 106 | 13 | 8 | 7 |
| Total | 990 | 100 | 832 | 100 | 158 | 19 |
As compared to December 31, 2011, there were no changes to the composition of the Company's Executive and Supervisory Boards as of June 30, 2012.
Apart from contractual remuneration of both the Supervisory and Executive Boards and dividends paid on ordinary shares, AIXTRON did not conclude or carry out any material transactions with related parties.
There were no known business events with a potentially significant effect on AIXTRON's results of operation, financial position or net assets after June 30, 2012.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements for the six months ended June 30, 2012 give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Herzogenrath, july 2012 AIXTRON se
Executive Board
AIXTRON SE Guido Pickert / Director Investor Relations Kaiserstr. 98 52134 Herzogenrath / Germany
Phone: +49 (241) 8909-444 Fax: +49 (241) 8909-445 E-mail: [email protected] Internet: www.aixtron.com
In the U.S., please contact: Klaas Wisniewski Phone: +1 (408) 747 7140 ext. 1363 Andrea Su Phone: +1 (408) 747 7140 ext. 1292 E-mail: [email protected]
October 2012: Q3 / 2012 Results
Publisher: AIXTRON SE, Herzogenrath Conception and design: Strichpunkt GmbH, Stuttgart and Berlin / www.strichpunkt-design.de
aixtron se kaiserstr. 98 52134 herzogenrath / germany www.aixtron.com
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